Amentum HoldingsHAM:ZI7 -0.68%16 Operating Margin % is 3.65% as of Mar. 2026, which is 41% above its 10-year median of 2.59. GuruFocus rates HAM:ZI7 with a GF Score™ of 16/100. The stock has 3 warning signs investors should review. Among 1,070 Business Services companies, Amentum Holdings ranks worse than 63.83% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Amentum Holdings Operating Margin % Related Terms
Amentum Holdings Operating Margin % Historical Data
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The historical data trend for Amentum Holdings's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:ZI7 vs DLB, UNF, AZZ: Operating Margin % Comparison
For the Specialty Business Services subindustry, Amentum Holdings's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Amentum Holdings Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Amentum Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Amentum Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Amentum Holdings's Operating Margin % for the fiscal year that ended in Sep. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Amentum Holdings (HAM:ZI7) has a Operating Margin % of 3.65% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Amentum Holdings and its competitors. This is 41% above median its historical median of 2.59. Over the past decade, Amentum Holdings' Operating Margin % has ranged from 2.38 to 6.58. According to the industry distribution chart, Amentum Holdings ranks #683 out of 1070 companies in the Business Services industry, placing it in the top 63.8%.
Is Amentum Holdings' Operating Margin % too high?
Amentum Holdings' current Operating Margin % of 3.65% is 41% above median its 10-year median of 2.59. Over the past 10 years, this metric has ranged from a low of 2.38 to a high of 6.58. The Business Services industry median Operating Margin % is 6.33. Amentum Holdings' value of 3.65% is 42.3% below this industry median. Based on the distribution chart, Amentum Holdings ranks #683 out of 1070 companies in the Business Services industry, which is below the industry midpoint. Overall, Amentum Holdings has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Amentum Holdings' Operating Margin % compare to DLB and UNF?
According to the Business Services industry distribution chart, Amentum Holdings ranks #683 out of 1070 companies for Operating Margin %. This places Amentum Holdings in the lower half of its industry. The industry median Operating Margin % is 6.33. Amentum Holdings' value of 3.65% is 42.3% below this benchmark. Historically, Amentum Holdings' own Operating Margin % has ranged from 2.38 to 6.58 over the past decade. While the company's 10-year median is 2.59 vs. the industry median of 6.33, Amentum Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Amentum Holdings's current Operating Margin % of 3.65% is 42.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Amentum Holdings and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amentum Holdings's current Operating Margin % is 3.65%, which is 41% above median its own 10-year median of 2.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amentum Holdings stock overvalued right now?
Amentum Holdings (HAM:ZI7) has a current Operating Margin % of 3.65%. The current Operating Margin % is 3.65%, which is 41% above median its 10-year median of 2.59 and 42.3% below the Business Services industry median of 6.33. Amentum Holdings' overall GF Score™ is 16/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Amentum Holdings (HAM:ZI7), the current Operating Margin % is 3.65% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Amentum Holdings Inc is an engineering and technology solutions provider serving U.S. and allied government agencies, as well as international and commercial customers across energy and environmental, intelligence, space, defense, civilian and commercial markets. It provides environmental remediation, intelligence and counter-threat solutions, data analytics, engineering and integration, testing, training and citizen services. The company operates through two segments: Digital Solutions, offering digital and data-driven services, and Global Engineering Solutions, providing environmental remediation, nuclear power solutions, platform engineering, sustainment, and supply chain management. majority of its revenue comes from the Global Engineering Solutions segment and from the United States.
16GF Score
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